Faction Sells Seattle Store To Red Star, Inc.

July 30, 2001

Faction has sold it’s Seattle retail store to Red Star, Inc. who will take over retail operations immediately. Red Star is a new corporation formed by Tracy Chandler, a three-year employee of Faction and Sevrin Henderson, a devoted Faction customer. In the deal, Red Star purchased 100 percent of the retail operation excluding the Faction name.

Faction will continue to manufacture clothing and accessories for men and women under the Faction brand name and open another office in Jackson, WY. Faction will continue to have an office and warehouse inside the shared space in Seattle with Red Star signing an agreement to continue to pack and ship the Faction US merchandise.

“The deal is great for Faction and Red Star because the transition is virtually seamless,” said Tim Pogue, president of Faction. “The only thing that changes with store is the sign out front, and the only thing that changes for Faction is the addition of the Jackson office. On top of all that, one of the employees who helped build Faction into one the Northwest’s top snow and skate retailers now owns it. I am really proud to hand the store over to the people that helped build it.”

All retail employees will remain with Red Star, including the current General Manager Kimo Cole.

“We are very excited to continue to build on what Faction has done,” said Red Star President Tracy Chandler. “We intend on staying true to the snowboarding and skateboarding customers we’ve built up over the years by keeping focused on great customer service and a great selection of the industry’s best brands.”

Faction’s Tim & Stephanie Pogue will be sharing offices and consulting with Tracy and Sevrin through September to help smooth out the transition for both Faction and Red Star. The terms of the deal are not being disclosed.